Titanium Blockchain Head pleads guilty to ICO fraud

Michael Alan Stollery, the CEO and founder of Titanium Blockchain Infrastructure Services Inc. (TBIS), has pleaded guilty to organizing an Initial Coin Offering (ICO) scam using BAR, the blockchain firm’s native token.

Stollery, 54, who is from Reseda, California, has successfully raised nearly $21 million from investors across the United States and abroad. According to a Department of Justice (DoJ) statement Monday, Stollery “touted TBIS as a cryptocurrency investment opportunity and misled investors into buying ‘BARs’, the cryptocurrency tokens or coins offered by TBIS’ ICO, through a series of false and misleading tactics buy statements.”

Additionally, the DoJ also stated that Stollery did not register the ICO with the United States Securities and Exchange Commission (SEC) when it was required to do so because Titanium did not have a valid exemption from the IRS’s registration requirements.

According to court documents, Stollery falsified aspects of TBIS’ white paper that “allegedly offered investors and potential investors an explanation of the cryptocurrency investment offering, including the purpose and technology behind the offering, how the offering differed from other cryptocurrency opportunities, and prospects for profitability.” the offer.”

Additionally, the DoJ statement said that Stollery placed fake testimony on TBIS’s website and claimed that he had “business relationships with the Federal Reserve and dozens of prominent corporations.”

“Stollery further admitted that he did not use the money invested as promised, but instead mixed ICO investors’ funds with his personal funds, using at least a portion of the proceeds from the offering for non-related expenses TBIS, like credit card payments and paying bills for Stollery’s condo in Hawaii,” the DoJ said.

Stollery faces up to 20 years in prison and is due to be sentenced on November 18.

Illustration shows the cryptocurrency Bitcoin
A representation of the cryptocurrency Bitcoin is seen in this image dated November 29, 2021.
Photo: Reuters / DADO RUVIC

https://www.ibtimes.com.au/titanium-blockchain-head-pleads-guilty-ico-fraud-1834569?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Titanium Blockchain Head pleads guilty to ICO fraud

Fry Electronics Team

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